What should I do if a contractor scammed me?

Document everything, contact your bank about a possible chargeback if you paid by card, report to police, and report to the Canadian Anti-Fraud Centre at 1-888-495-8501. Report to your provincial consumer protection office, and consult a lawyer if significant money is involved.

Contractor Payment Scams in Canada 2026: Red Flags and How to Protect Yourself

Q: What is the most common contractor scam in Canada?

The deposit-and-disappear scam: a contractor, often door-to-door, asks for a large upfront deposit to buy materials, then never returns. Protect yourself by paying no more than 10 to 15 percent as a deposit. Legitimate contractors have supplier accounts and do not need full payment upfront.

Q: How much deposit should I pay a contractor in Canada?

No more than 10 to 15 percent. Anyone demanding 50 percent or more upfront, or cash only, is a red flag. Pay by cheque or traceable transfer so you have a record, and hold final payment until the work is complete and inspected.

Renovation fraud is one of the most common consumer scams in Canada, with thousands of complaints to the Canadian Anti-Fraud Centre every year. Victims, often seniors and first-time homeowners, lose thousands to fraudulent contractors who take a deposit and vanish, do shoddy work, or invent problems to extract more money. Here is how the scams work and how to stay safe.

If something feels wrong, stop. A legitimate contractor never pressures you to sign or pay on the spot. If you feel rushed, that is the red flag.

Know the playbook

The 7 most common contractor scams

Scam	How it works	Protect yourself
Deposit and disappear	Door-to-door deal, large deposit "for materials," then they vanish.	Never pay more than 10 to 15% upfront.
Storm chasing	After a storm or flood, fast cheap repairs pushed with hard pressure.	Never hire on the spot after a disaster. Get multiple quotes.
Scope-creep extortion	Low quote, then "hidden problems" appear and work stops until you pay more.	Require written change orders. Get a second opinion on hidden defects.
Lien threat	Threatens a lien on your home unless you pay beyond what was agreed.	Keep payment records. A lien only covers work actually done. See a lawyer.
Fake or double invoices	Bills for work not done, inflated materials, or the same work twice.	Require itemized invoices. Walk the site before each progress payment.
Cash-discount pressure	Big "cash discount" to dodge HST, leaving you no paper trail or recourse.	Pay by cheque or e-transfer. A 10%+ cash discount is a red flag.
Unlicensed trades	Electrical, plumbing, or gas work done without a licence, failing inspection.	Ask for licence numbers and verify with the provincial authority. Pull permits.

Spot it early

Red flags checklist

Solicited door-to-door, especially after storms
A deal that seems too good to be true
Asks for 50%+ upfront
Cash only, or refuses receipts
No WSIB/WCB, insurance, or licence numbers
No fixed address, only a cell number
"This price is only good today"
Refuses a written contract
Cannot provide recent references
Wants to start with no permits

Pay contractors so there is always a paper trail

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If it already happened

What to do if you have been scammed

Stop payments. If you paid by credit card, ask your bank about a chargeback right away.
Document everything. Photos of the work, contracts, receipts, and all messages.
Report to police. Renovation fraud is a criminal matter. File a report.
Report to the Canadian Anti-Fraud Centre. 1-888-495-8501 or antifraudcentre.ca.
Report to provincial consumer protection. Ontario, BC, and others each have an office.
Consult a lawyer. For larger amounts, a construction lawyer can advise on liens or small claims.

FAQ

Frequently asked questions

What is the most common contractor scam in Canada?

The deposit-and-disappear scam. A contractor asks for a large upfront deposit and never returns. Pay no more than 10 to 15% as a deposit.

How much deposit should I pay a contractor?

No more than 10 to 15%. Anyone demanding 50%+ or cash only is a red flag. Pay by cheque or traceable transfer and hold final payment until the work is inspected.

What do I do if a contractor scammed me?

Document everything, ask your bank about a chargeback, report to police and the Canadian Anti-Fraud Centre (1-888-495-8501), and consult a lawyer if significant money is involved.

Information is for general guidance, not legal or financial advice. bremo.io is an independent Canadian money guide. We may earn a referral fee when you open an account through our links, at no cost to you.

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